The Three Stars in the South candlestick pattern is a very uncommon bullish reversal pattern. I've only ever seen it complete on the daily timeframe one other time in my career - when Tesla went on its truly parabolic run from 1300 - 3000+. See related idea.
Seriously, that's the last and only time I have seen this on a daily chart without it being a historical reference in a textbook. The pattern is seldom mentioned due to its infrequency (and thus its inapplicability to beginner-level traders), but the market analyst, Thomas Bulkowski, was able to find a few examples and define the pattern concretely. Some of the statistics mentioned in his candlestick encyclopedia:
Three Stars in the South:
a) has an approximate frequency of 4 candles for every 9 million that print b) results in a strong bullish reversal 100% of the time it forms on a significant timeframe (believe it is daily and higher)
Anyways, just thought I'd mention since I did say Gold could approach a much higher target in the near future.
Alrighty, bear trap/short squeeze seems to finally be taking effect today. Gold has a tendency to fake the break (as all gold bulls are very aware of), so I do see a slight chance of one last leg down, in similar fashion as the prior two days.
However, I see this as extremely unlikely; silver being up so much is a pretty solid confirmation of legitimate reversal.
Aside from the silver confirm, the technicals underpinning the equity indices (the dow and Russ particularly) are pretty damn bearish, which is why Im finding it odd how few shorties there are, at least publically on this site. Yes, the Nasdaq had a nice day yesterday, but any weakness in tech (perhaps due to impending higher inflation, insane overvaluations, etc.) and all stocks will surely rip down for at least a few days.
For the cherry on top, we have quad witching today, which sets the stage for extreme volatility - and more importantly - expected extreme volatility. For there to be a paradigm shift, the market needs to have reason to be fearful of change. Witching provides an excellent backdrop for a metal/stock leadership change in asset classes.
So, buy gold, sell stocks, short tech into next week is my strategy and it will prove to be a multi-bagger if correct across the board.
Good luck, today will be challenging.
Trade active
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Once BTC starts its last freefall, should see gold reverse. If BTC and stocks fall tomorrow, gold may fake the selloff and then start its big move up.
Would expect gold to begin its rally within the next week if it is to happen at all.
Wow nice pick up, very piggish! I am not personally in gold but I am in silver and nickel, perhaps this piece of data may be bullish for certain other commodities as well.
UnknownUnicorn5511258
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@pacifiedStar62604, oh i think so sir. i choose gold cause this market is fickle, but im quite sure all the commodities will benefit from this little reversal that we've got here.
Bounce and then heading lower for another year? I think it would be good to wipe the optimism for PMs
UnknownUnicorn5511258
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@FelixTheWhale1, lol, nah this happens before major rotation. in march 2020, when stocks came down, gold did as well, but that was just a formality. Gold spent about a day or two in the dumps and then shot right up.
Gold and silver are tough to trade for sure, but this dip is going to get bought very quickly and then its a bull continuation indefinitely, so long as inflation is here to stay (it is).
FelixTheWhale1
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@Perma_Pig metals are really hard to trade. I am all in and buying almost every dip but knowing that overvalued tech had way better performance last years is disappointing. But I am not complaining - it is a good possibility to accumulate more. I think by 2035 we will be rewarded